Answer:
A special order should be accepted provided the sales revenue from the exceeds the total relevant costs of the special order
Explanation:
A special order should be accepted provided the sales revenue from it exceeds the total relevant costs of the special order.
The total relevant cost of a special order is the sum of all future cash-based costs incurred as a direct consequence of the special order.
Most times, these costs include:
It is worthy of note that items of general fixed costs which would be incurred either are to be excluded in the analysis. As such they are irrelevant
